Overview
Alamo Group Q3 net sales rise 4.7%, beating analyst expectations
EPS for Q3 misses analyst estimates, reflecting operational challenges
Industrial Equipment Division sales grow 17%, while Vegetation Management sales decline 9%
Outlook
Company sees healthy backlog levels in Industrial Equipment Division
Alamo Group plans to invest in organic growth and acquisitions
Result Drivers
INDUSTRIAL EQUIPMENT GROWTH - Industrial Equipment Division sales increased 17% due to healthy backlog and modest growth in bookings
VEGETATION MANAGEMENT DECLINE - Vegetation Management Division sales decreased 9% due to softness in end markets
OPERATIONAL INITIATIVES - Co is consolidating facilities in Vegetation Management Division to reduce fixed costs and improve productivity
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $420 mln | $407.50 mln (4 Analysts) |
Q3 EPS | Miss | $2.10 | $2.64 (4 Analysts) |
Q3 Net Income | Miss | $25.40 mln | $32.40 mln (3 Analysts) |
Q3 Operating Income | Miss | $37.50 mln | $45.40 mln (3 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"
Wall Street's median 12-month price target for Alamo Group Inc is $234.00, about 24.3% above its November 5 closing price of $177.22
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 19 three months ago
Press Release: ID:nPn2Htf8ha
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)